Rupee gains 16 paise to 82.71 against US dollar on firm domestic equities

The rupee appreciated 16 paise to 82.71 against the US dollar in early trade on Friday, tracking a firm trend in domestic equities.

Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.

At the interbank foreign exchange, the domestic unit opened at 82.77 against the dollar, then gained further ground to touch 82.71, registering a rise of 16 paise over its previous close.

On Thursday, the rupee consolidated in a narrow range and settled 7 paise lower at 82.87 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.13 per cent to 103.97.

The rupee continued to trade range bound for the fourteenth straight session. There were strong bids seen around 82.75, which prevented USD/INR from sliding lower despite month-end exporter selling, IFA Global Research Academy said in a research note, adding that the "rupee is likely to trade an 82.65-82.95 range with sideways price action".

Brent crude futures, the global oil benchmark, declined 0.13 per cent to USD 83.35 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 179.33 points or 0.29 per cent higher at 61,313.21. The broader NSE Nifty rose 54.55 points or 0.3 per cent to 18,245.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 572.78 crore, according to exchange data.